Hermès to expand production capacity as revenue touches €6 billion
08/02/2019
The site, located in Louviers in the Eure department, is expected to be built at the start of 2021. It is the latest phase of the group’s efforts to increase its production capacity in France. It inaugurated a similar facility in nearby Val-de-Reuil in 2017.
This announcement came as Hermès presented its results for 2018. It reported revenue of just under €6 billion for the 12 months, up 10% at constant exchange rates compared to the previous year.
The group saw growth in sales across all its business lines. Its leathergoods and saddlery division grew 9% year-on-year, which Hermès attributed to increased production capacity in order to meet high demand for its products.
All geographic regions performed well. Led by strong growth in China and South Asia, the Asia (excluding Japan) region saw its revenue increase by 14%. In Europe (excluding France), revenue increased 8%. The group’s domestic revenue saw a 6% increase in sales. Hermès added that America “confirmed its momentum” with sales growth of 12%.
Axel Dumas, executive chairman of Hermès, said: “In an uncertain global context, I am very pleased with the success of Hermès which saw revenue rise to €6 billion. Such performance reflects the attractiveness of our collections, which are based on unfettered creativity and outstanding technical expertise, enabling us to maintain our model of sustainable and responsible growth, in line with our values of craftsmanship and entrepreneurial spirit.”
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